Sterling erased overnight gains and was trading flattish during the London session, seen hovering around 1.2770, which are 1 year lows for the GBPUSD pair.

Earlier in the day, UK unemployment rate improved notably and fell from 4.2% to 4.0%, while analysts had expected the rate to stay unchanged at 4.2%. However, wage growth missed expectations and slowed by a notch to 2.4% and the unemployment claims also failed to surpass estimates and declined only very marginally from 7,800 to 6,200. The pound ticked lower after the numbers.

The greenback is being bid amid the ongoing turmoil in Turkey, which sent the dollar index to 13 month highs on Monday.

The GBPUSD pair is now trading below the lower bound of the declining channel, which is the key resistance for today’s session. It is seen around 1.2860 and if the cable jumps beyond, further relief rally could push the pair back toward the 1.30 level.

On the other hand, the support is located around the current cycle lows at 1.2740 and if not held, bears could target the 1.26 level in the initial reaction.

Disclaimer: The content of the Reports constitutes Marketing Communication and does not constitute Investment Advice or Investment Research or an offer for any transactions in financial instrument. The content of the Reports represents the view of our experts on a generic basis, and does not take into consideration individual readers personal circumstances, investment experience or current financial situation. In addition, the Reports have not been prepared in accordance with legal requirements designed to promote the independence of Investment Research, and are not subject to any prohibition on dealing ahead of the dissemination of Investment Research. Readers using the Reports should consider the possibility of encountering substantial losses. The past performance is not a guarantee of future results. Therefore, Goldenburg Group Limited shall not accept any responsibility for any losses of traders due to the use and the content of its Reports.